You've gotten through the Holiday season, likely enjoyed some vacation time, and perhaps even have your own financial statements in hand.
For many retailers, 2021 proved to be a very profitable year. Congratulations!
In fact, go here to check out the pre-tax profit trends for the past two years for the median performers in 50+ retail segments. To borrow a phrase, everybody (almost) is above average!
It's no surprise, is it? The circumstances of the pandemic conspired to force expense reductions, reduced inventories, higher turns, better margins – all of which contributed to profit growth.
How do we know this? By checking out all six of the Benchmark trends for those retail segments. Many retailers are in better financial shape than they have been in years!
Ahh, but now it's 2022. What do you think is in store for you this year?
We can think of some ominous signs.
But look. Be that as it may, you must develop your profit plan for this year.
The ROI's PROFITS Forecaster can help you make that happen. If it looks like you won't have a profit, best to find out right now! (You still have time to make adjustments.)
ROI Members have unlimited access. It's only $29.95 a month – that is, nearly FREE – and you can do it yourself. Get cracking!
In the free enterprise system, owners are free to succeed. And free to fail.
That's why The Retail Owners Institute has defined the #1 responsibility of the Owner as the survival of the business.
But then, the owner must define "Why?" Why are we doing this, anyway? Why are we working so hard for this business to survive and thrive?
Heads up. You can take a grim situation and turn it into an advantage.
Universally, there is a shortage of "good employees." While many will use that as an excuse, it can be a great opportunity for those who seize it.
That's why we paid particular attention to this commentary by Ty West in The Playbook*.
And therein lies the opportunity.
You've no doubt seen the headlines and the commentary:
Consumer spending is up, but not on what was expected, especially those publicly-traded chains that must report quarterly.
Have you seen what the Silicon Valley venture capital firms are saying to the startup firms they've invested in?
While it may be tempting to smile and nod approvingly at this dose of business reality, there's a ripple effect to be aware of.
As reported in the May 31 edition of the Wall Street Journal*, "Their advice includes cutting costs, preserving cash, and jettisoning hopes that hedge funds or other investors will swoop in with big checks."
Still less than $1 a day! 👀